March 2008

    
   
   

WHERE COMMUNICATIONS INFLUENCE DECISIONS
   

The Point:
 

Re-think Communications in Times
of Economic Uncertainty

   
 

Address feelings, not just features to gain share

If the flurry of communications coming from financial services companies is any indicator, marketers are hoping to capitalize on economic uncertainty to capture a larger share of consumers’ money. But Barbara Sullivan says that communications strategies that work in boom times aren’t always the ones that work when times get tough.

Sullivan says that when people are worried about their financial situation, it’s not enough to stress features and performance. She advises clients to keep these six points in mind:

1. Look after your own clients first
Your current clients are in motion too. Make sure they know you are right there with them, advising them, reassuring them, and offering them thoughtful guidance. If you don’t, they will give their business to someone who will.

2. Move away from mass messages
Now it is more important than ever to understand your segments. It isn’t just that different financial situations and life stages will require different strategies, it’s also extremely important to think about how people in different situations with different risk profiles and different goals will react to events. You need to tailor your message to make sure you are addressing their specific concerns.

3. Help clients put performance in perspective
Show your clients you have the people and the tools to help them look at their performance based on their goals, not just the past month’s performance.

4. Promote credit selectively
As interest rates come down, mortgages and other credit will become attractive again. But we’ve learned that different types of credit are more appropriate for different types of clients. This is not the time for mass-marketing of credit. Again, segmentation is key here—know who your borrowers are.

5. Communicate clearly and in plain language
Financial marketers tend to use a lot of industry jargon that is not always clear to their clients. Especially now during this period of uncertainty, clients need a sense of control. A key to gaining client trust is making sure they understand their finances, and how their relationship with you works.

6. Be positive
Fear is paralyzing—and contagious. If their financial service provider seems frozen in fear, people will react the same way. People will make sound, positive decisions when they believe you can help them make a plan that can lead them through difficult times. Let them know you are there to help and you care about them.

Uncertain economic times put money in motion and create opportunities for financial marketers. But only if they change their communications to meet the needs of the times.